Trade Wars and Winning Them

Trade wars begin when countries tax goods and services coming in to their country increasing the price of those goods and services making them less cost competitive. The price of manufactured goods is based on the markup from cost of production and overhead. Increasing production plus lowering energy consumption and unit cost is reduced substantially.

Companies are looking to energy efficiency as one way to reduce the price of their products, however the ineffective and inefficient use of power needs to be accomplished first or conservation products such as L.E.D. lighting is wasted when power issues such transients destroy the bulbs even before the investment is recouped, creating losses rather than gains.

It is possible to increase production, reduce energy consumption and maintenance costs due to failures of production system components and provide a competitive edge even against lower wage countries at the same time if done in the correct sequence.

The first step is to eliminate power quality issues so the energy conservation efforts aren’t lost before breaking even.